A big build in Japanese Yen buying versus the US Dollar, British Pound, Euro, and Australian Dollar leaves us plainly in favor of further weakness (USDJPY, GBPJPY, EURJPY, AUDJPY strength).

In fact, forex retail crowds are now their most net-short GBPJPY in over 2 years.

Elsewhere recent shifts in sentiment have forced us to reconsider our calls for major US Dollar strength. With the Euro in particular we’ll need to see a material break lower and shift in sentiment to call for further declines.